Legend: blue tag – fabric, red tag – yarn, green tag – other store, orange tag – reference point.
Green tags: The Whole Nine Yards (E Burnside) specializes in upholstery fabrics. SCRAP PDX is all kinds of crafty goodness. Collage (2 locations) carries craft and art supplies; not much fiber. Little Otsu carries pens, pencils and planners/calendars/journals.
Some have closed since XOXO 2016: Happy Knits, Knit/Purl. Backstory came and went before I could investigate.
Fiber Rhythm, on SE Division at 11th in the Ford Building, is on vacation until Sept 13 (and thus not tagged in the map). They specialize in yarns for machine knitting and weaving, and do carry hand knitting yarn as well.